Buy-to-let borrowers are looking for shorter mortgage terms, with those seeking loans of 25 years or more declining by 10 percentage points to 52% over the past year.
The amount of money that buy-to-let landlords are putting down in deposits has also jumped by 15% to £100,000 in the past year, according to the Mortgage Advice Bureau, which reports that the average value of investment homes has remained at just under £230,000.
The new figures show the average loan to value deal sought by buy-to-let borrowers dropped from 62.2% 56.5%. Investors are now applying for mortgages with £99,914 of equity behind them, a rise of £13,289 in the last year.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “A number of mainstream lenders have already increased their buy-to-let offer and new entrants have also arrived to boost competition,
“It means this part of the market is likely to see strong activity this year, both from people who are already involved with BTL and others who are learning the ropes.”